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In the case of brokers and copper derivatives, the spread charged on the copper instrument may also contribute to the price difference.
The economic principle of substitution represents a risk of investing in any commodity, and copper is no exception. Markets coverage, company profiles and industry insights from Australia’s best business journalists – all collated and delivered straight to your inbox every day. Ero Copper (ERO – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst yesterday. Analyst Guilherme Rosito from Bank of America Securities maintained a Buy rating on the stock and has a C$36.00 price target.
Read on to find out about how copper prices compare to precious metal prices like gold and silver. We also explain the main price drivers of copper, how you can get copper via bullion dealers, and how you can keep up with copper price news. According to Fastmarkets researchers, copper prices are expected to remain strong through the remainder of 2024 and throughout 2025, supported by growing demand for renewable energy and electric vehicles (EVs). “In the short term, higher copper prices will continue to incentivize mined supply growth in the DRC,” Fastmarkets research analyst Robert Searle said. Then, the rate of supply through copper mining and production determines what price the commercial consumers pay.
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Copper Demand in Emerging Markets
“Australia nickel-cobalt operations have higher mining and processing costs and the glut of nickel that has arrived in the market over the past three years has meant many of these are no longer economical,” he added. Nickel production has increasingly shaped the cobalt market, particularly through Indonesia’s rapid expansion of its mixed hydroxide precipitate (MHP) output. “Producers in the DRC will continue to mine copper to capitalize on its higher profitability. And even if the cobalt by-product is left unsold, the producers will still make great profits solely on copper,” the trader said. Marko has been working on the road for over 5 years, and is currently based in Europe. Alongside writing and editing, Marko works on projects related to online technology and digital marketing.
Why are copper prices different on exchanges?
- Coupled with the current attractive valuation, these factors present Ero Copper as a prime opportunity to leverage a positive outlook on copper, making the current underperformance an opportune buying moment.
- The election of Donald Trump in the US could also add more barriers for these cobalt metals,” a second trader said.
- Guilherme Rosito has given his Buy rating due to a combination of factors including Ero Copper’s strategic responses to recent operational challenges and its promising growth prospects.
- Finally, natural disasters like earthquakes and landslides can slow down mining output.
- For example, the Copper Futures price on Comex is different from what you see on the London Metal Exchange (LME).
A halt of growth in emerging fxdd forex broker review economies would almost certainly have a negative effect on copper prices. Mt Chalmers has a resource of 11.3Mt at 0.75% copper, 0.42g/t gold, 0.23% zinc and 4.6% silver, with 4.3% sulphur that hosts an ore reserve of 9.6Mt at 0.65% copper along with 0.48g/t gold, 0.27% zinc, 5.2g/t silver and 4.3% sulphur. The global cobalt market is forecast to see an oversupply of 25,000 tonnes in 2024 and 21,000 tonnes in 2025, according to Fastmarkets researchers. Indonesia’s cobalt metal could potentially enter the US market tariff-free, unlike Chinese cobalt, which faces a 25% import tariff. That possibility could raise concerns about shifting global supply dynamics and increase the pressure on cobalt prices, sources said. These HPAL projects have guaranteed sustained growth in Indonesia’s cobalt output and cobalt production from MHP is expected to grow by 17%,from 29,000 tonnes in 2024 to 34,000 tonnes in 2025.
Factors that affect US housing demand, Defi stocks including nonfarm payrolls, mortgage rates, US gross domestic product (GDP), and demographics, also play an important role in determining copper demand. The price of copper may depend greatly on the ability of these countries, as well as other emerging economies like Brazil. The latest assays include hits such as 26m at 1.38% copper, 0.29g/t gold, 11g/t silver and 1.99% zinc from a down-hole depth of 72m (DCRC018) and 10m at 2.49% copper, 0.47g/t gold, 18g/t silver and 83m (DCRC024) that complement its initial high-grade strikes. “With most producers in Indonesia jointly owned by Chinese companies, it’s still challenging for Indonesian cobalt to enter the US. The election of Donald Trump in the US could also add more barriers for these cobalt metals,” a second trader said. “Cobalt metal is a by-product in our HPAL projects, and can be produced with almost no additional cost.
QMines wraps up high-grade Develin Creek copper project
Future projections of copper supply and demand are available via various resources. The most common weight units to measure copper are pounds (lb), standard ounces (oz), troy ounces (t oz), and grams (g). For copper commodity market prices for trading — you’ll find copper listed in pounds (lb).
For copper, despite the expected rise, the market remains sensitive to macro-economic conditions and geopolitical events. A strong US dollar and weaker industrial demand in Western economies could disrupt prices, for instance. And there could be a slowdown in refined supply growth in 2025 due to a reduction in primary production, according to Fastmarkets researchers.
What Drives Copper Prices?
With increased copper and nickel python math libraries production, the cobalt market faces continued oversupply heading into 2025. But with cobalt demand remaining decidedly sluggish, copper’s upward trajectory will continue to fuel cobalt oversupply and, combined with the fact that copper production is poised to expand further, this will keep cobalt prices under pressure. Different exchanges and brokers list different live copper prices because of several reasons. In the case of exchanges, the market maker and data provider may be different. For example, the Copper Futures price on Comex is different from what you see on the London Metal Exchange (LME).
Fastmarkets researchers forecast a 1.1% growth in refined copper supply for 2025. Finally, natural disasters like earthquakes and landslides can slow down mining output. Copper traders should pay attention to geopolitical news that affects the mining industry. Historically, countries in this region have occasionally chosen governments that nationalized the mining industry. “We are very pleased with the current results from the company’s maiden drilling program at the newly acquired Develin Creek copper project,” executive chairman Andrew Sparke said. While Indonesian cobalt metal theoretically enjoys tariff-free access to the US, geopolitical barriers and trade policies could limit outflows.
